Register in One Day, Start Invoicing Tomorrow
Registering as a freelancer (svobodna profesiya) in Bulgaria is one of the fastest business setups in the European Union. Two steps, one day, and you are legally ready to invoice clients. No minimum capital. No notary. No company formation documents. Just a BULSTAT registration at the Registry Agency and an OKD-5 declaration at the National Revenue Agency.
The result: a 7.5% effective income tax rate — the lowest for freelancers anywhere in the EU — with simplified accounting, capped social security contributions, and full legal standing to work with clients anywhere in the world.
This guide walks through every step of the process, from prerequisites to post-registration obligations, for both EU citizens and non-EU nationals.
What Is a Freelancer (Svobodna Profesiya)?
In Bulgarian law, a svobodna profesiya (free profession / liberal profession) is a natural person who performs work based on their own skills and expertise, for their own account, without being registered as a sole trader (ET) or commercial company. You are not an employee — you are self-employed, issuing invoices directly to clients under your own name.
This status covers a wide range of service-based activities:
- IT and tech: Software developers, web designers, UX/UI designers, system administrators, DevOps engineers
- Creative: Graphic designers, photographers, videographers, writers, translators, illustrators
- Consulting: Business consultants, marketing consultants, management advisors, strategy consultants
- Professional services: Accountants, tax advisors, architects, engineers
- Education: Tutors, language teachers, online course creators, coaches
Regulated vs unregulated professions
Most freelancer activities in Bulgaria are not regulated — meaning you do not need a specific license or diploma to register. IT, consulting, marketing, design, translation, and most creative work fall into this category. You simply register and start working.
Some professions, however, are regulated and require professional licensing or diploma recognition before you can register. These include lawyers (Bulgarian Bar admission), doctors and dentists (Medical Association registration), architects (Chamber of Architects membership), and auditors (ICPA registration). If your profession is regulated, you must first obtain the relevant professional license, then register with BULSTAT.
Key distinction: Freelancers provide services based on personal expertise. If your activity involves buying and selling goods (trade), you cannot register as a freelancer — you need a sole trader (ET) or company registration instead. Freelancer status is for service providers who sell their knowledge, time, or creative output.
Prerequisites Before You Register
Before starting the registration process, you need three things in place:
1. LNCH (Personal Number for Foreigners)
Your LNCH (lichен номер на чужденец) is a 10-digit personal identification number issued to all foreign nationals with residence in Bulgaria. It is printed on your residence certificate and serves as your tax identification number at the NRA — you do not receive a separate tax number.
The LNCH is issued by the Migration Directorate (Дирекция "Миграция") — not by the police, the municipality, or GRAO. EU citizens can obtain it by applying for an EU residence certificate at the Migration Directorate office in Sofia or at the relevant regional office.
EU citizens have 4 grounds for residence in Bulgaria: as a company owner/self-employed person, as an employee, as a self-sufficient person (requiring proof of approximately EUR 5,100 in a Bulgarian bank account), or as a family member of an EU citizen already resident in Bulgaria.
2. Accommodation proof
You need a registered address in Bulgaria. This can be a rental contract (with the landlord's notarized consent for address registration), property ownership, or a declaration from a person providing accommodation. Your address registration must be completed at the municipality before you apply for your LNCH at the Migration Directorate. For details, see our accommodation proof guide.
3. Bank account
A personal bank account at a Bulgarian bank is sufficient for freelancer operations. You do not need a corporate or business account — freelancers operate as natural persons. Your clients pay into your personal account, and you pay taxes and social security from the same account. For bank options, see our guide to Bulgarian banks for foreigners.
Non-EU citizens: The process is more involved. You need a freelance work permit from the Bulgarian Employment Agency, a Type D visa from a Bulgarian embassy, and a residence permit. The initial residence permit is issued for 1 year and can be renewed. You must demonstrate a detailed freelancer plan and sufficient funds. Once you have a valid residence permit with LNCH, the BULSTAT and NRA registration steps below are the same. See our residence permit guide for the full process.
Step 1: BULSTAT Registration at the Registry Agency
Your first step is registering with the BULSTAT National Register at the Registry Agency (Agentsia po Vpisvaniyata). This gives you a unique 10-digit BULSTAT/EIK number — your business identification code used on all invoices, contracts, and tax filings.
Documents required
- Application form — standard form available at the Registry Agency or online
- Valid passport (original + copy)
- Residence certificate with LNCH — issued by the Migration Directorate
- Proof of professional qualifications — only if your profession is regulated (diploma, license, bar admission, etc.). For unregulated professions (IT, consulting, design, etc.), this is not required.
- Payment receipt for state fee
Fee
The state fee for BULSTAT registration is BGN 10 (approximately EUR 5) when filed electronically. You can pay via bank transfer or e-Pay before or after submitting the application.
How to submit
- Online: Through the Registry Agency portal using a qualified electronic signature (QES). Processing is same-day.
- In person: At any Registry Agency office. Bring originals and copies of all documents. Processing is typically same-day or next business day.
What you receive
A 10-digit BULSTAT/EIK number. For individuals (freelancers), the BULSTAT number is derived from your EGN (for Bulgarians) or LNCH (for foreigners). This number goes on every invoice you issue and every tax document you file.
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Book Free ConsultationStep 2: OKD-5 Declaration at the NRA
After obtaining your BULSTAT number, file the OKD-5 declaration (Declaration for Registration of a Self-Insured Person) with the National Revenue Agency (NRA). This is a mandatory declaration that registers you as a self-insured person and specifies the social security contributions you will pay.
What the OKD-5 declares
- Start date of your freelance activity
- Type of social security contributions — you choose whether to insure for:
- Disability, old age, and death only (lower contributions, no sickness/maternity benefits), or
- Disability, old age, death plus general sickness and maternity (higher contributions, but you qualify for sick pay and maternity leave)
- Insurance base — a self-chosen monthly amount between the minimum (EUR 550.66 in 2026) and maximum (EUR 2,111.64 in 2026) on which contributions are calculated
Deadline
The OKD-5 must be filed within 7 calendar days of starting your freelance activity. This deadline matters: if you miss it, you will be insured only for disability, old age, and death — you lose the option to choose sickness and maternity coverage until the following calendar year.
How to submit
- Online: Through the NRA electronic portal with a qualified electronic signature (QES) or Personal Identification Code (PIC)
- In person: At the territorial directorate of the NRA corresponding to your registered address
Same-day registration: Both steps — BULSTAT at the Registry Agency and OKD-5 at the NRA — can be completed on the same day. If you submit BULSTAT electronically in the morning and visit the NRA office in the afternoon (or file OKD-5 online), you are a registered freelancer by the end of the day. You can start issuing invoices the next business day.
After Registration: What Happens Next
Once both registrations are complete, you have several ongoing obligations:
Monthly social security payments
You must pay your social security contributions by the 25th of the following month. If you start freelancing on April 10, your first payment is due by May 25. Payments are made via bank transfer to the NRA using specific payment codes for each fund (pension, health, sickness, supplementary pension).
Most freelancers insure on the minimum base of EUR 550.66, paying approximately EUR 175 per month in total contributions. This is the most common and perfectly legal approach. You can choose a higher base if you want larger pension and sickness benefits.
Invoicing
Issue an invoice for every payment you receive. Each invoice must include your BULSTAT/EIK number, your full name and address, the client's details, a description of the service, the amount, and the date. If you are not VAT-registered, your invoices do not include VAT.
Quarterly advance tax payments
If your net taxable income from the previous year exceeded certain thresholds, you may need to make quarterly advance income tax payments. Your accountant will calculate whether this applies and the exact amounts.
Annual tax return
File your annual personal income tax return by April 30 of the following year. This includes a social security reconciliation (Table 1 and Table 2) that calculates whether you owe additional contributions or are entitled to a refund based on your actual annual income versus the monthly advance payments you made.
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Get Started →Accounting for Freelancers
One of the biggest advantages of the freelancer structure over a company (EOOD) is simplified accounting. Freelancers in Bulgaria are not required to maintain full double-entry bookkeeping — the complex system required of all limited companies.
Instead, freelancers maintain a simplified income and expense register: a record of all invoices issued, payments received, and expenses incurred. This can be as simple as a spreadsheet, though most accountants use basic accounting software.
What simplified accounting means in practice
- No balance sheet — freelancers do not prepare annual financial statements in the company sense
- No double-entry journals — no debit/credit ledger entries
- Income register — a chronological record of all income received
- Expense records — while the 25% automatic deduction means you do not need to document business expenses for tax purposes, keeping receipts for actual business costs is still good practice
- Annual tax return — filed using Annex 3 of the personal income tax declaration
Cost of accounting
Most accountants charge freelancers EUR 60-80 per month for ongoing services, which includes monthly social security declarations, income tracking, quarterly advance tax calculations (if applicable), and the annual tax return with social security reconciliation. This is roughly half the cost of EOOD accounting (EUR 100-250 per month), reflecting the simpler compliance burden.
VAT adds complexity: If you voluntarily register for VAT or cross the EUR 51,130 threshold and must register, accounting costs increase because your accountant must prepare and file monthly VAT returns. For freelancers serving exclusively B2B clients in other EU countries, VAT registration is often unnecessary — those services are reverse-charged and typically do not count toward the domestic threshold.
When to Consider Switching to an EOOD
The freelancer structure is ideal for solo service providers earning under EUR 50,000-60,000 per year. But there are clear signals that it is time to consider an EOOD (single-member limited company) instead:
- Liability exposure: Freelancers have unlimited personal liability — your personal assets (savings, property, car) are at risk if a client sues. An EOOD limits liability to the company's registered capital.
- Income above EUR 60,000-80,000: At higher incomes, the ability to retain earnings inside an EOOD at just 10% corporate tax — without paying the additional 5% dividend tax until you distribute — becomes valuable. The break-even analysis depends on how much you reinvest vs. distribute.
- Hiring employees: Freelancers cannot employ staff. If you need to hire, you need a company.
- Client requirements: Larger enterprises and government contracts often require a legal entity counterparty.
- Building a sellable business: A freelancer practice cannot be sold. An EOOD is a transferable asset.
For a detailed comparison with calculations at different income levels, see our Freelancer vs EOOD Income Threshold guide.
Not Sure Which Structure Fits?
We compare freelancer vs EOOD based on your actual income and goals. Free 15-minute consultation.
Book a Call"Can I really register in one day?" Yes. The BULSTAT registration at the Registry Agency processes same-day when filed electronically. The OKD-5 at the NRA can be filed online or at any NRA office on the same day. We regularly complete both steps for clients within a single business day. The only prerequisite that takes longer is obtaining your LNCH from the Migration Directorate (typically 1-3 weeks for EU citizens), but that is a one-time process completed before registration begins.
Register as a Freelancer in Bulgaria
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